Articles Tagged ‘Barrister financial planning’

Barrister accounts FAQs: Guidance for pupils and new barristers

Barrister Chambers

As part of our series of Barrister FAQs, we’ve looked at a range of accounting issues that are specific to Barrister accounts. This time we focus on pupils and new Barristers.

We understand that when you are new to the Bar, accounting options can be daunting and decisions you make in your early career can have significant implications later on, such as choosing your year end. Our specialist barrister teamcan talk you through your options.

Barrister accounts FAQs: Sole Trader or Limited Company?

Barrister Chambers

There are pros and cons of how you set up your business and the way you trade as a barrister. With over 30 years’ experience, acting on behalf of hundreds of barrister clients we often get asked which is the better option - Sole Trader of Limited Company?

In this, the latest article in our series of FAQs on barrister accounts, we look at the key considerations and which might be the right route for you.

Barrister accounts FAQs: What is cash basis accounting?

Put simply, cash basis accounting is a straightforward way of working out the tax you pay through self assessment based on income and expenses received. 

It means that you pay tax on what you have actually received, excluding debtors invoiced and work in progress.

By using the cash basis you will not need to calculate your debtors and creditors at the year-end, nor estimate accruals and prepayments. Barristers have a concession to use the cash basis for their first 7 years.

Barrister accounts: Your FAQs answered

If you’re like many barristers, you probably have a fair few questions about your accounts and general financial arrangements. Not surprising really, as financial accounting for barristers is often complex with numerous matters which relate solely to your profession.

Barristers - How do you handle your accounts when you retire or cease trading?

Barrister Retirement

When a barrister ceases trading, either through retirement, appointment or election to become a judge or a change in vocation or profession, the profits accessible in the final tax year (whether calculated under a Cash Basis or Earnings Basis) of practice will be those arising in the period beginning immediately after the end of the basis period for the preceding year and ending on the date of cessation.

In the latest in our series of articles on barrister accounts, we take a look at the different ways to handle your accounts when you are due to retire or choose stop trading as a barrister for any reason.

Can Barristers change their accounting basis to become more tax efficient?

Barrister Chambers

Depending on various factors, as a Barrister, you can choose how you would like your accounts and tax to be prepared. You are allowed to change between thebasis of accounting relatively freely providing you notify HMRC accordingly and make all the necessary transitional adjustments where appropriate. It might be the case that changing the basis of accounting could make you more tax efficient. Read the latest in our series of Barrister FAQ articles to find out more. 

Making Tax Digital for barristers and chambers

Barrister Chambers

In less than a year, HMRC will be introducing the Making Tax Digital (MTD) scheme to modernise the tax system, making it “more effective, more efficient and easier for customers to comply”.

The first phase will require businesses over the VAT threshold to keep digital records for VAT purposes and submit quarterly submissions from 2019. As barristers qualify as businesses they will be expected to comply with the new scheme.

Businesses under the VAT threshold will not be asked to make the switch to MTD and update HMRC quarterly for any other taxes, until at least 2020. 

Find out how this will affect your accounts and taxation.

Understanding Cash Accounting for Barristers

Barrister Chambers

 As a barrister, profits may be calculated in one of three ways; the ‘Old’ Cash Basis, the Earnings Basis and the ‘New’ Cash Basis. In our series of Barrister FAQs, we’ve talked about ‘What is Cash Basis Accounting? In this article we provide a helpful overview of each kind, for you to establish which system is right for you. 

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